June 25, 2025 a 07:31 am
EVRG: Dividend Analysis - Evergy, Inc.
Evergy, Inc. presents a notable dividend profile characterized by steady payouts and a solid dividend history, spanning over four decades. The company's established position in the utilities sector, coupled with its commitment to shareholder returns, makes it an attractive option for income-seeking investors. With a respectable current dividend yield and a consistent dividend growth rate, Evergy demonstrates potential for long-term value generation.
📊 Overview
Evergy, Inc. operates within the Utilities sector, providing a robust dividend yield of 4.02%. Currently, the company offers a dividend per share of 2.59 USD and boasts an impressive dividend history spanning 41 years, having not faced any recent cuts or suspensions.
| Attribute | Value |
|---|---|
| Sector | Utilities |
| Dividend yield | 4.02 % |
| Current dividend per share | 2.59 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
📈 Dividend History
The historical consistency in Evergy’s dividends strengthens investor confidence, signifying reliability in returns even through various market cycles. Here's a snapshot of the recent dividend payments, illustrating their resilient strategy amidst fluctuating economic conditions.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.3350 |
| 2024 | 2.5950 |
| 2023 | 2.4800 |
| 2022 | 2.3300 |
| 2021 | 2.1775 |
📉 Dividend Growth
Understanding dividend growth is vital as it indicates a company’s ability to increase shareholder value over time. Evergy’s dividend growth over the last 3 and 5 years reveals moderate, continuous improvement in shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 6.02 % |
| 5 years | 6.10 % |
The average dividend growth is 6.10% over 5 years. This shows moderate but steady dividend growth, underscoring Evergy's commitment to enhancing shareholder returns.
🗣️ Payout Ratio
Payout ratios are crucial in determining financial sustainability of a dividend. Evergy’s EPS-based payout ratio stands at 68.16% while its negative free cash flow-based ratio indicates a need for optimization in cash management.
| Key Figure | Ratio |
|---|---|
| EPS-based | 68.16 % |
| Free cash flow-based | -306.04 % |
The EPS-based payout ratio suggests a sustainable payout, although the negative FCF ratio calls for caution, reflecting on cash reserve strategies.
📊 Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency yields insights into strategic financial management. Evergy’s fluctuating free cash flow yield and substantial CAPEX to operating cash flow ratio illustrate critical investment in infrastructure against liquidity dynamics.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | -2.52 % | -2.95 % | -2.49 % |
| Earnings Yield | 5.20 % | 6.09 % | 6.16 % |
| CAPEX to Operating Cash Flow | 120.23 % | 117.87 % | 117.79 % |
| Stock-based Compensation to Revenue | 0.32 % | 0.32 % | 0.19 % |
| Free Cash Flow / Operating Cash Flow Ratio | -20.23 % | -17.87 % | -17.79 % |
These figures reflect significant capital allocation towards infrastructure expansion, impacting free cash flow but bolstering long-term growth prospects through strategic reinvestment.
💼 Balance Sheet & Leverage Analysis
A comprehensive balance sheet evaluation highlights the stability and financial prudence. Metrics such as Debt-to-Equity and Current Ratio provide insights into Evergy’s risk posture and borrowing strategy.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 1.27 | 1.37 | 1.43 |
| Debt-to-Assets | 41.18 % | 41.16 % | 43.58 % |
| Debt-to-Capital | 55.93 % | 57.87 % | 58.92 % |
| Net Debt to EBITDA | 5.47 | 5.48 | 5.33 |
| Current Ratio | 0.53 | 0.51 | 0.50 |
| Quick Ratio | 0.33 | 0.29 | 0.26 |
| Financial Leverage | 3.11 | 3.34 | 3.29 |
Evergy maintains a high leverage strategy, reflective of its capital-intensive industry. The debt levels necessitate careful monitoring to ensure financial sustainability.
✅ Fundamental Strength & Profitability
Key profitability metrics reveal Evergy’s capacity in earnings generation and operational efficiency, which are paramount to assessing its competitive edge within the utility sector.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 7.94 % | 7.57 % | 8.91 % |
| Return on Assets | 2.55 % | 2.27 % | 2.71 % |
| Margins: Net | 12.85 % | 13.28 % | 14.94 % |
| Margins: EBITDA | 45.18 % | 43.87 % | 45.18 % |
| Research & Development to Revenue | 0.00 % | 0.00 % | 0.00 % |
Profitability metrics indicate Evergy’s adeptness at translating revenue into profit, albeit with room to optimize asset utilization efficiencies further.
📉 Price Development
🗣️ Dividend Scoring System
| Criteria | Rating | Score |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
Rating
In summary, Evergy, Inc. offers a compelling dividend profile with a strong history and reasonable yield. However, watchful management of leverage and cash flow is advised. Overall, for investors prioritizing dividend security and modest growth potential, Evergy remains a viable candidate with a score of 28 out of 40.